Shift differential pay
A differential is paid on top of the base rate for less desirable hours. It is set by the employer or a union contract, either as a percentage (10% of base is common) or a flat amount per hour ($1.50 an hour, for instance). No federal or Georgia law requires one; the Georgia Department of Labor says extra pay for night or weekend work is a matter of agreement (Georgia DOL).
Worked example (pre-filled). A base rate of $18 with a 10% night differential is $19.80 an hour on nights. A week with 24 night hours ($475.20) and 20 day hours ($360.00) has 44 hours and straight-time pay of $835.20. That is 4 hours over 40, so overtime is owed.
Here is the part many pay stubs get wrong: overtime must be based on the regular rate, which includes the differential. Federal regulations say night-shift differentials, "whether they take the form of a percent of the base rate or an addition of so many cents per hour," must be included in the regular rate before overtime is computed (29 CFR 778.207(b)). The regular rate is total straight-time pay divided by total hours: $835.20 ÷ 44 = $18.98. The overtime premium is half that rate for each overtime hour, $37.96, bringing the week to $873.16. Paying the extra half on the $18 base alone would underpay.
Formula and assumptions
straight-time pay = differential hours × differential rate + base hours × base rate
regular rate = straight-time pay ÷ total hours
overtime premium = 0.5 × regular rate × max(0, total hours − 40)
gross = straight-time pay + overtime premium
- Straight time is already paid for all hours, so overtime adds only the half-time premium (29 CFR 778.110).
- Assumes one workweek, the federal 40-hour threshold and no other bonuses. Non-discretionary bonuses also enter the regular rate.
Frequently asked questions
How is a 10% shift differential calculated?
Multiply the base rate by 1.10. $18 × 1.10 = $19.80 an hour for the differential hours.
Does shift differential count toward overtime?
Yes. Under 29 CFR 778.207, night-shift differentials must be included in the regular rate used to figure overtime. Overtime is 1.5 × the blended regular rate, not 1.5 × the base rate.
Is shift differential required in Georgia?
No. Georgia and federal law do not require premium pay for nights or weekends. It is an employer policy or contract term.
What is a typical shift differential?
Employers commonly use a percentage (5% to 15%) or a flat hourly add-on, larger for overnight than for evening shifts. The calculator accepts either form.
Related calculators
- All time & hours calculators
- Overtime pay calculator: Regular, time-and-a-half and double-time pay for a week
- Time and a half calculator: 1.5× your hourly rate and the pay for a number of overtime hours
- Time card calculator: Total a week or two weeks of in/out times with breaks and overtime
- Georgia paycheck calculator: take-home pay after federal, FICA and Georgia tax
- Overtime pay in Georgia: rules and taxes
Sources
- 29 CFR 778.207, Shift differentials and other premiums must be included in the regular rate, via Cornell LII
- 29 CFR 778.108, The “regular rate” of pay, via Cornell LII
- 29 CFR 778.110, Overtime for an hourly rate employee (worked example), via Cornell LII
- Georgia Department of Labor, Individuals FAQs: Fair Labor Standards Act
This calculator gives general estimates from the figures you enter. It is not tax, legal, payroll or financial advice. See our disclaimer.